Strike Selection

How does the EDR formula combined with RSAi skew AI determine iron condor strikes on SPX?

VixShield Research Team · Based on SPX Mastery by Russell Clark · May 3, 2026 · 0 views
EDR RSAi iron condor strikes SPX options skew analysis

VixShield Answer

At VixShield we rely on two proprietary tools developed by Russell Clark to select strikes for our 1DTE SPX Iron Condors the Expected Daily Range indicator and RSAi Rapid Skew AI. The EDR formula blends short-term implied volatility from VIX9D with 20-day historical volatility using the structure EDR equals VIX9D times 0.1 plus HV times 0.5 multiplied by a regime-based factor between 0.8 and 2.0. This produces a projected one-day price band that we translate into three risk-tiered credit targets Conservative at 0.70 Balanced at 1.15 and Aggressive at 1.60. For example with SPX at 7138.80 and current VIX at 17.95 the EDR might forecast a 1.16 percent daily range roughly 83 points guiding us to place short strikes outside that expected move while the long wings sit another 5 to 10 points farther to define maximum risk. RSAi then refines these placements in real time. It starts with the EDR output multiplies by current VIX applies a skew-assessment layer that reads the last four hours of VIX momentum and SPX position relative to VWAP then walks the wings in 5-point increments on the heavier-skew side until the exact credit target is reached. The entire process completes in about 253 milliseconds delivering mathematically optimized strikes that match what the market is actually paying rather than generic probability levels. This combination powers our daily 3:10 PM CST signals which fire after the 3:09 PM SPX cascade and keep us in a set-and-forget framework with no stop losses. The Conservative tier has historically achieved approximately 90 percent wins or 18 out of 20 trading days. When volatility expands we lean on our ALVH Adaptive Layered VIX Hedge a three-layer structure of VIX calls in a 4/4/2 ratio across 30 110 and 220 DTE that has reduced drawdowns by 35 to 40 percent in spike periods at an annual cost of only 1 to 2 percent of account value. The Temporal Theta Martingale provides zero-loss recovery by rolling threatened positions forward to 1-7 DTE on EDR above 0.94 percent or VIX above 16 then rolling back on VWAP pullbacks to harvest additional theta. All positions are sized to a maximum of 10 percent of account balance. These tools together form the core of our Unlimited Cash System designed to win nearly every day or at minimum not lose. All trading involves substantial risk of loss and is not suitable for all investors. Visit vixshield.com to explore our full SPX Mastery methodology and consider joining the VixShield community for daily signals and live refinement sessions.
⚠️ Risk Disclaimer: Options trading involves substantial risk of loss and is not appropriate for all investors. The information on this page is educational only and does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always consult a qualified financial professional before trading.

💬 Community Pulse

Community traders often approach strike selection by blending implied volatility forecasts with real-time order-flow reads or custom scripts that scan skew surfaces. A common misconception is that purely statistical probability models such as one-standard-deviation ranges are sufficient on their own. In practice many have found that adding a dynamic skew layer improves credit capture especially on days when put or call wings are disproportionately bid. Discussions frequently highlight the value of pairing a daily-range indicator with an AI-driven adjustment mechanism to avoid leaving premium on the table. Some participants report testing similar hybrids on paper before committing capital noting that regime-aware multipliers and VWAP filters help filter out low-quality setups. Overall the consensus leans toward systematic repeatable processes over discretionary guesswork with emphasis on protecting against volatility expansions through layered hedges.
📖 Glossary Terms Referenced

APA Citation

VixShield Research Team. (2026). How does the EDR formula combined with RSAi skew AI determine iron condor strikes on SPX?. Ask VixShield. Retrieved from https://www.vixshield.com/ask/how-does-the-edr-formula-rsai-skew-ai-actually-work-for-picking-iron-condor-strikes-on-spx-anyone-using-something-simila

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